DUBAI, 2 SEP. 04 (WAM)-- Dubai Ports International (DPI), whichis still awaiting a letter of intent from the Kerala government to manageand operate the Vallarpadom container terminal in southern Indian cityof Kochi, is planning to invest $400 million in the project.
The Indian government last month approved DPI's bid for a 38-yearconcession to operate and manage the existing Rajiv Gandhi Container Terminal and develop the greenfield site into a major International Container Transshipment Terminal (ICTT) at Vallarpadom in Kochi.
DPI expects a formal letter from the Cochin Port Trust, followingwhich it will begin the process of taking over the management of the terminal, the Dubai-based Khaleej Times quoted a source in DPI assaying.
Since DPI was the highest bidder for the project, the approvalwas a formality. DPI emerged as the highest bidder for the terminal'sconcession, beating out six qualified contenders, including Port of Singapore Authority, P&O Ports, Maersk Sealand, ICTSI and a hostof local Indian companies in consortium with other terminal operators,such as the Port of Malta, the paper reported.
DPI's bid offered a 33.3 per cent revenue sharing, much higherthan the 10 to 12 per cent offered by the closest rival bid - IL & FS-PunjLloyd Consortium, Mumbai. Rail and road access into the hinterland inIndia is available from the port of Cochin, making this an effective gatewayfor the growing Indian trade.
This will be DPI's second venture in South Asia, after its successfulbid for Visakhapatnam Port a few years ago. DPI commenced operation atVisakhapatnam Port in July last year. With Kochi, the number of internationalterminals operated by DPI increases to five.
